Following Friday's trend day, we saw light balanced trade yesterday with an upward drift following the early tag of the prior settle. Price moved briefly into the single print zone from Friday but stopped at the VAH. Short term traders were in control no doubt given the low volume and responsiveness at levels.
Overnight has been weak, taking out Friday's low, not helped by weaker than expected China PPI. The 2060-62 zone is a high volume area and the natural target initially. A break of this would put the 2044-46 zone as the next major target. This is a high volume area from the Dec-Feb range, a 50% pullback into the Feb move and a 100% projection of the Friday impulse move from yesterday's high.
The overnight range 2 hours before the open is 2058.75-2078.00, with inventory heavily short going into the open and range gapping lower currently. Gap rules will likely be in play today. 2059.00 is a 61.8% projection of the impulse move from Friday.
If the market finds support at the 2060-62 zone and begins to accept back in within Friday's range, the daily profile levels and resistance zones come into play.